Maximize Benefits from Historic Structures with Tax Incentives
A historic structure is a building that has been officially recognized for its historical significance. These buildings hold special status and are often protected, which discourages demolition or substantial alterations and encourages restoration and rehabilitation endeavors.
Special Tax Status and Benefits
Thanks to their important status, certified historic structures enjoy various incentives. One of the most appealing is the ability to claim a 20% tax credit on qualified rehabilitation expenses. This noteworthy tax break can motivate building owners to restore and maintain these precious gems of history.
The Power of Certified Historic Structures
Certified Historic Structures offer a unique tax advantage. Once a structure is marked certified, substantial savings can be achieved in terms of rehabilitation costs, making preservation financially rewarding for property owners.
A Real-Life Example
To illustrate, consider an old office building that has been designated as a Certified Historic Structure. The owner decided to undertake necessary restorations. Because the building qualifies for historic status, the owner can avail of a 20% tax credit on all qualified rehabilitation expenses. This significantly offsets the costs involved in restoration and helps preserve the historical essence of the property.
FAQ Section
What qualifies a building as a certified historic structure?
A building must be listed in the National Register of Historic Places or be certified as contributing to the significance of a registered historic district to be considered a certified historic structure.
What are qualified rehabilitation expenses?
Qualified rehabilitation expenses generally include reconstruction, restoration, and rehabilitation costs associated with historic structures, excluding acquisition or new work costs.
How do I apply for the 20% tax credit for certified historic structures?
Applications typically involve submitting a Historic Preservation Certification Application through State Historic Preservation Offices or the National Park Service.
Are all historic structures eligible for the tax credit?
Only certified historic structures are eligible for the 20% tax credit; however, some non-certified historic buildings may qualify for a 10% tax credit.
By understanding and leveraging these benefits, you can ensure the preservation and respectful rehabilitation of historic structures while reaping the financial rewards.
Related Terms: rehabilitation expenses, certified historic structures, income tax status, tax incentives.
